The electron transport and magnetic properties of Au-Co ribbons prepared by single-roller melt-spinning are found to be associated with the concentration of Co in four locations. These locations are: (a) Co in Au, (b) Co lamellae. (c) Co precipitates, and (d) Co clusters, In ribbons prepared at a reduced quenching rate a resistivity minimum, similar to that of the Kondo effect in dilute magnetic alloys, is found. (C) 1998 Elsevier Science B.V. All rights reserved.